The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

1542 ET - Some cybersecurity stocks are trading at lofty valuations following a Monday rally fueled by a sell-off in the chip sector and fears of AI cyberattacks, with names like Palo Alto Networks and CrowdStrike valued above their peak multiples in 2021. "We're definitely in a premium valuation territory," Jefferies analyst Joseph Gallo says in an interview, adding that inflecting fundamentals could support upward estimate revisions. "It's very clear that people are looking for momentum and inflection and durability, and that will ultimately justify valuations." The rally likely raises the bar for the next season of cybersecurity earnings, Gallo adds. (elias.schisgall@wsj.com)

1510 ET - Roblox used its annual developers conference to highlight expansion of its catalog to browser and App Store-based games, an offline playing option, and an AI game development tool for non-technical creators, Wedbush says in a note. The company needs to retain developers and show investors a path back toward accelerating growth, and its updates at the conference were a start, the analysts say. "Roblox has a substantial opportunity ahead and is laying the groundwork well," they write. "We need more evidence on the monetization side, and specifically on the timeline for these initiatives to show up in bookings, before turning more constructive." They keep a perform rating but raise their price target to $48 from $40. Wells Fargo and Bank of America also lift their price targets on the stock. Shares gain 11%.(elias.schisgall@wsj.com)

1425 ET - Unity Software and AppLovin both have ample room to grow, despite some investors' concerns that the companies will eat into each others' businesses, Morgan Stanley analysts say. The analysts think the mobile-app advertising market has enough room to support continued growth for both companies. The market is worth roughly $80 billion and currently has a conversion rate of roughly 1%, the analysts say. Improved targeting allows ad networks to get more conversions from the same number of impressions. That has helped AppLovin grow faster than the market, and Unity is now in the early stages of a similar journey, they say. (katherine.hamilton@wsj.com)

1334 ET - UBS analysts expect Callaway Golf to generate more Ebitda this year and next than they previously anticipated, boosted in part by lower tariff costs. Still, the analysts say they are slightly lowering back half revenue estimates as they still remain at the midpoint of the revenue guide. "Upside for the full year has come largely from margin, and we had been flagging upside to margin partially from lower tariffs," the analysts say. They cut the stock's price target to $17 from $19 after updating the estimates and rolling valuation forward to the end of 2028. Callaway Golf is off 1.6%. (elias.schisgall@wsj.com)

1315 ET - Policymakers need to get in the same room with AI company leaders this week to address the latter group's request for more industry oversight and slower development of the technology, Melius Research analysts say in a research note. Anthropic CEO Dario Amodei has called for national legislation requiring frontier-model testing, employee-level access for external evaluators and tighter controls for adversaries in China, they say. Some senators are drafting a bipartisan bill that could be introduced this week, which would likely try to impose a "duty of care" on frontier developers, the analysts say. That would give the government authority to block an unsafe model release and create a framework for labs to test for catastrophic cyber, biological and nuclear capability, they say. (dean.seal@wsj.com)

1255 ET - Volkswagen's restructuring plan is a potential game changer but the assumptions and targets seem demanding, Morgan Stanley analysts say in a note. Executing the plan--reducing capacity and cost, adding flexibility and speed to market--would make the analysts more positive on VW. "We see many low hanging fruit and think that VW has room to fund a good part of that restructuring via nonstrategic asset disposals," MS says. Nevertheless, right now some of the plan depends on potentially bumpy negotiations with unions, which could generate positive and negative news flow in the second half, according to MS. Volkswagen shares closed at 81.46 euros.(sarah.sloat@wsj.com)

1247 ET - Among the takeaways from Anthropic CEO Dario Amodei's calls this weekend to slow AI development was confirmation that Recursive Self Improvement, self-improving AI models, are being deployed across the industry, Melius Research analysts say in a research note. Amodei warned that the acceleration of RSI introduces a spate of new risks. But the admission is also a huge catalyst for compute demand, the analysts say. RSI runs on inference with thousands of agents constantly writing code, launching experiments and reading results, they say. Slowing upfront model training doesn't stop that loop, and arguably just redirects compute budgets elsewhere, the analysts say. "The models RSI produces are better and cheaper per token and every price cut in the last two months has been met with more consumption," they say. (dean.seal@wsj.com)

1239 ET - Investors in the AI trade shouldn't get hysterical about top AI company leaders calling for a development slowdown and more guardrails for the industry, Melius Research analysts say in a research note. The top AI CEOs have been endorsing a slowdown for several years already, and most AI leaders have thought the space was bound for regulation anyway, they say. If anything, Anthropic and OpenAI are the companies that can benefit most from a regulatory framework that creates a predictable playing field for the most well-resourced and advanced companies, the analysts say. "It can be morally right and advantageous at the same time," they say. (dean.seal@wsj.com)

1225 ET - D.A. Davidson analyst Gil Luria accuses leading AI labs OpenAI and Anthropic of engaging in "coordinated cartel behavior" to consolidate their power and hobble competitors following their leaders' calls to slow the development of AI capabilities. The cybersecurity risk of AI improvement "is being exploited by an unholy alliance of Anthropic, OpenAI and degrowth politicians trying to scare citizens and governments into allowing them to seize more power," Luria writes in a note. "Anthropic and OpenAI are trying to pull the ladder and prevent competitors from catching up." Their goal, as Luria sees it, is to implement a regulatory framework on the labs' terms that disproportionately impacts smaller competitors with fewer compliance resources. (elias.schisgall@wsj.com)

1213 ET - Renault's exposure to a strong European market makes it the biggest beneficiary of potential regulatory protection, Morgan Stanley analysts say in a note. Renault is unlikely to sustain the market share growth it saw last year amid competition with Chinese carmakers but that doesn't rule out positive volume growth, MS says. That is because the French carmaker is the most exposed company to European pent-up demand, which has further room to recover, MS says. Chinese competition is a concern long term but it brings incentives to adjust costs and capacity, the analysts say. MS upgrades Renault to equalweight from underweight, and raises the target to 31 euros from 25 euros. Shares closed at 29.36 euros. (sarah.sloat@wsj.com)

1206 ET - Thomson Reuters' share price divergence creates opportunity, says TD Cowen's Vince Valentini. The analyst says in a report that TRI shares have been under pressure since July 2025, "declining approximately 54% from their all-time high despite consistently delivering strong operating results." He notes that guidance continues to trend higher, with management expecting organic revenue growth of 7.5%-8% in 2026, up from 7%-7.5% in 2025. Also, following 2Q, target outlook was raised 50 basis points to 8% "for the total company and to 9.5%-10.0% for the Big Three segments, from approximately 9.5% previously." With the shares down about 40% over the last 52 weeks at C$145.13, Valentini says "the current valuation increasingly understates the company's attractive long-term growth and margin outlook." (adriano.marchese@wsj.com)

1145 ET - Sam Altman has confirmed that OpenAI won't go public until next year, but that's been the sentiment for some time now, Neostellar Capital's Evan Schlossman says in a note. Altman's statements are tied to he and Elon Musk supporting Anthropic CEO Dario Amodei's call to slow down AI development over safety concerns. The company just raised $122 billion, showcasing how much demand they've still got in the private markets, Schlossman says. Clearly OpenAI isn't facing any pressure to run to the public markets, and will go public whenever its most advantageous to the business, he says.